DCM Shriram (DCMSHRIRAM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 net revenue rose 11% year-on-year to INR 3,272 crore, with EBITDA up 74% to INR 408 crore and PAT up 152% to INR 159 crore; H1 FY26 revenue increased 12% to INR 6,534 crore and PBDIT by 44% to INR 734 crore.

• Chemicals, Vinyl, Fenesta, and Shriram Farm Solutions drove growth, supported by new capacity, product diversification, and government incentives.

• Strategic focus on integration, sustainability, and value chain expansion through backward and forward integration, including new projects and acquisitions.

• Board approved acquisition of a saltworks in Gujarat to secure raw material supply and reduce price volatility.

• Acquisition of 100% shareholding in Hindusthan Speciality Chemicals Limited completed and consolidated from August 26, 2025.

Financial highlights

• Q2 FY26: Revenue INR 3,272 crore (+11% YoY), PBDIT INR 408 crore (+74% YoY), PAT INR 159 crore (+152% YoY), ROCE 15%.

• H1 FY26: Revenue INR 6,534 crore (+12% YoY), PBDIT INR 734 crore (+44% YoY), PAT INR 273 crore (+67% YoY).

• Consolidated revenue for Q2 FY26: INR 3,432.43 crore; H1 FY26: INR 6,887.61 crore.

• Interim dividend of 180% (INR 56.14 crore) declared.

• Net debt at INR 773 crore as of September 2025.

Outlook and guidance

• Expecting improved demand for PVC and carbide post-monsoon, with ECH market outlook strong and plans to ramp up capacity and exports.

• Sugar sector expects government to allow exports and incentivize them due to surplus production; ethanol blending in petrol reached 19.17% as of September 2025, on track for 20% target.

• Fenesta and Shriram Farm Solutions to focus on geographic and product expansion.

• Management notes some business segments are seasonal, impacting quarterly results.